***Click here to download video. Click here for audio.***

WASHINGTON – U.S. Senator Kevin Cramer (R-ND), a Senate Banking Committee member, issued the following statement on the U.S. House of Representatives passing S. 945, the Holding Foreign Companies Accountable Act:

“There is no reason to let Communist China game the system and put American investments in jeopardy. Our bill protects our constituents’ hard-earned money and shines a light on China’s nefarious actions. I am glad the House supported it and look forward to President Trump signing it.” 

Congress created the Public Company Accounting Oversight Board (PCAOB) to inspect audits of public companies, ensuring the information companies provide to the public is accurate, independent, and trustworthy. Currently, China refuses to allow the PCAOB to inspect audits of companies registered in China and Hong Kong. According to the Securities and Exchange Commission (SEC), 224 U.S.-listed companies are located in countries where there are obstacles to PCAOB inspections. These companies have a combined market capitalization of more than $1.8 trillion. In the last 10 years, the number of Chinese companies listed on U.S. stock exchanges has increased significantly.

The bipartisan Holding Foreign Companies Accountable Act will help protect American investors and their retirement savings from foreign companies that have been operating on U.S. stock exchanges while flouting oversight. Specifically, the bill: 

  • prohibits securities of a company from being listed on any of the U.S. securities exchanges if the company has failed to comply with PCAOB audits for three years in a row;
  • requires public companies to disclose whether they are owned or controlled by a foreign government, including China’s communist government; and
  • ensures foreign companies traded in America are subject to the same independent audit requirements that apply to American companies.

The bill was introduced and led by Senators John Kennedy (R-LA) and Chris Van Hollen (D-MD). Senator Cramer – as well as Senators Tom Cotton (R-AR), Bob Menendez (D-NJ), Marco Rubio (R-FL), and Rick Scott (R-FL) – was an original cosponsor of the bill. It passed the Senate in May.

Learn more here.